“The Minnesota House overwhelmingly passed a tax bill Thursday that cuts $503 million in taxes for businesses and realigns state tax policy so that it more closely conforms with federal tax law,” writes MPR News reporter Tom Scheck.

The 126-2 vote came on the same day Gov. Mark Dayton proposed an even more robust tax cut plan in his supplemental budget. Both the governor and House leaders say the proposal needs to move quickly, but Senate leaders are indicating they want more time.

The vote comes a little over a week into the session and less than a year after Gov. Dayton and the DFL-controlled Legislature passed a budget that raised $2.1 billion in taxes. The most recent state budget forecast projects a $1.2 billion surplus in the current two-year budget cycle.

State Rep. Ann Lenczewski, DFL-Bloomington, said the bill should pass quickly to ensure that taxpayers waiting to file before April 15 will benefit.

“We need to do federal conformity right now because people are filing their taxes right now,” Lenczewski said during the House floor debate. “And we need to repeal those business-to-business taxes that the surplus would allow us to do.”

While the vote was nearly unanimous in the Minnesota House, some Minnesotans like Brent Strom say a tax-cut is a bad idea. “We should be utilizing that money to reinvigorate the rainy day fund and to cover the extra transportation repairs that will be needed after this winter,” he wrote. It’s “infrastructure time,” added Coleen Tully.

the law of unintended consequences generates massively larger impacts at higher velocities.

Simple math … stupid a 100 MPH hurts a lot more than stupid at 10 MPH

Ralphy

This seems like a good opportunity for some trading between the opposite sides of the aisle. Some tax cuts as a trade-off for some spending. Cut the business services and warehouse tax and pay back the schools, rethink the police, fire and nursing cuts, invest in infra-structure and save some for the next financial crisis.

Guest

Who’s money is it?
Give it back to the people who paid it in proportion to what they paid in. Not more redistribution.

AndyBriebart

It’s never enough spending, right ?

Jeff

Correct, there is always something to do with other people’s money.

JQP

on executive compensation.

Jeff

As shareholder you can limit that…go buy a share and complain in a shareholders meeting…if you’re just some random person complaining about someone else’s salary with no financial impact on yourself I’d suggest that you stop letting envy run your life.

JQP

I’ve been a direct shareholder in Chevron , as an example, since 1972 and have had that discussion in letters and at shareholder meetings since 1986.
Its not envy, as you so callously suspect, but utter disdain for a board and executive team that squander money. My investment is losing money because they overpay mismanagement.

Jim G

Federal conformity is important, but we don’t want to jump right back into the crisis budgeting mode of the past decade. The Senate needs to do its due diligence, making some changes, and then let’s hash out the differences in an expedited conference committee. I see a goal date of March 31 for sending it to the Governor as totally reasonable. The expedent passage of this tax cutting bill would be a refreshing reminder that democracy can still work and show business that our democracy works for everyone with Democratic leadership.

Rich in Duluth

No.

Are people so short sighted that they can’t remember recent budget deficits? In addition, we have roads in terrible shape, 1100 structurally deficient bridges, under funded schools….

Jim G

Rich, I agree the roads are in terrible shape. There are 1100 structurally deficient bridges, and underfunding of our schools is continuing. My thoughts here, are that we might have over-corrected our steering when coming out the ruts of the Great Recession. Let’s avoid a wreck in November and give Democratic House members in Purple districts an argument they can use against Republican adversaries.

Rich in Duluth

Jim

I find this is so frustrating. We have underfunded government so much, both State and Federal, for so long. But the politics of Purple districts and States demands that we do the opposite of what is necessary to provide the services we need and demand for our civilization. If you get a chance, read The Price of Civilization by Jeffrey D. Sachs.

Jim G

Frustrating… certainly. I’ll buy the book on my Nook today. Thanks for the referral.

John

Our roads are so congested and in such poor shape that even business groups supported a gasoline tax increase a few years ago because their members were losing time and money to the congestion in the Twin Cities and repairs.

Use the money to get our roads and bridges back in shape, it is a win-win – better for businesses, better for citizens (as consumers and those who use the roads). This is one of many areas in which we need to invest again. We’ve neglected this for too long.

whitedoggie44

I don’t really care as my residence has been Florida for many years in order to escape lousy winters and democrats income confiscation. If Dayton had not been born with a money tree in his backyard, and he had to “earn” his wealth, he likely would have been a republican. See you in May!

Jim G

We’re saving a strut-breaking pothole for you.

whitedoggie44

Stay warm in the tundra.

Jim G

Spoken like a true snow-bird.

Gordon near Two Harbors

Why not stay in Florida year-round? From what I’ve seen while traveling around this country, is that the states with the lowest taxes tend to have the worst schools, the most poverty and income disparity, and the most crime. The only exceptions are those states that have oil and gas reserves to fund their public services.

PlanesTrains&Automobiles2014

I would love to see my tax dollars go to fixing roads and bridges. Wasn’t it recently the Republicans who coined the phrase “More Lanes and Less Trains?” Try driving around the pot hole filled streets of Minneapolis.

Jack

Agree with you 100%

Gordon near Two Harbors

I’d rather see more mass transit. Building more lanes won’t fix the problems we currently have (just look at Chicago, Los Angeles, etc.). A comprehensive plan that includes tough zoning rules to limit outward sprawl, would save the taxpayers billions of dollars in construction and maintenance costs. There is no fiscal sense in paying for more and more infrastructure to serve housing developments/strip malls, while destroying valuable farmland and open space at the same time.

PaulJ

Parts of it. They should rebuild the rainy day fund. On the other hand, politicians do use the tax code (instead of creating long term regulations) to avoid having to work.

Jeff

There is a $1.23 billion surplus, we are discussing a ~$500 million tax reduction proposed by Dayton and the House. We are not refunding ALL the money to the tax payers this is only removing taxes that don’t exist in other states…this is exactly why the Republicans resisted them at the time…now we are removing them (giving the Democrats a redo) instead of listening to the Republicans in the first place. This basic, common sense tax reduction should just happen…resisting it shows the true colors of many of these Democrats…they believe tax money is the legislature’s first and foremost and are unwilling to remove unfair, harmful and nonsensical taxes that would still result in a half billion dollar surplus. Just get this done, now.

Gordon near Two Harbors

I’d establish a sizable reserve fund to avoid the expensive borrowing that occurs during economic downturns–just like a family should have a reserve fun for those occasions.
The rest should go back to the taxpayers in the form of a tax cut.

tpk

Return 2/3 to the taxpayers, spend the other 1/3 on roads and bridges.

mike

I believe we can cut back on taxes for the middle class but spend more on roads and other transportation. Schools and the poor need help. cut back on the rates, but keep the money the state has. Lots to reserve funds. Make sure the rich pay at least the same in percentage as the middle class and poor do. Sales taxes and fees count too. not just income taxes.